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Unformatted text preview: ains a pair, (a, b ) where
a = u1 (x , y ) and b = u2 (x , y ).
These numbers could be just monetary payoﬀs, or it could be
inclusive of “social preferences” (the fact that you may be altruistic
towards your partner or angry at him or her).
Should you play “work hard” or “shirk”?
8 Game Theory: Lecture 2 Strategic Form Games Strategic Form Games
Let us start with games in which all of the participants act
simultaneously and without knowledge of other players’ actions. Such
games are referred to as strategic form games—or as normal form
games or matrix games.
For each game, we have to deﬁne 1
3 The set of players. The strategies. The payoﬀs. More generally, we also have to deﬁne the game form, which captures
the order of play (e.g., in chess) and information sets (e.g., in
asymmetric information or incomplete information situations). But in
strategic form games, play is simultaneous, so no need for this
additional information. 9 Game Theory: Lecture 2 Strategic Form Games Strategic Form Games (continued)
(Strategic Form Game) A strategic fo...
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- Spring '10